As Congress considers sweeping tax legislation that would transfer the PCAOB’s responsibilities to the SEC, the regulator is already preparing for the possibility.

According to Accounting Today, the House-passed “One Big Beautiful Bill” includes language that would eliminate the PCAOB and fold its standard-setting, inspections, and enforcement functions into the SEC. While the Senate has yet to finalize its version of the legislation, and the PCAOB provision has not been the center of attention, SEC officials are planning ahead. 

Speaking at a financial reporting conference hosted by USC Leventhal, SEC Acting Chief Accountant Ryan Wolfe said the agency is monitoring developments closely. “We are aware of the proposed legislation,” Wolfe said. “We are thinking about these issues and are prepared to take on new statutory responsibilities if required.” 

Wolfe emphasized the importance of maintaining the core functions the PCAOB currently performs. “I hear, pretty consistently, the value of standard-setting, inspections, and enforcement,” he said. 

In the meantime, the SEC is continuing its oversight of existing standards, including implementation of QC 1000, the PCAOB’s new quality control standard that takes effect at the end of 2025. 

Despite the planning, the SEC has not been immune to broader federal workforce reductions. Acting Deputy Chief Accountant Guava Hiranandani noted the departure of several long-serving staff members in recent months. 

PCAOB chair Erica Williams, for her part, has publicly voiced strong opposition to the proposed shift. Speaking last week in Washington D.C., she argued that the PCAOB’s global enforcement reach and technical expertise are uniquely valuable, and not easily replicated. “This is not something that can be cut and pasted,” she said.